Yael on AI

Yael on AI

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Yael on AI
DeepSeek's r1: an economic earthquake, not an AI revolution

DeepSeek's r1: an economic earthquake, not an AI revolution

DeepSeek's cheaper AI model shakes up the industry, but don't mistake cost-efficiency for cognitive superiority

Yael Rozencwajg's avatar
Yael Rozencwajg
Feb 01, 2025
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Yael on AI
Yael on AI
DeepSeek's r1: an economic earthquake, not an AI revolution
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DeepSeek's r1: an economic earthquake, not an AI revolution
DeepSeek's r1: an economic earthquake, not an AI revolution

A new AI model from China's DeepSeek has sent shockwaves through the industry, outperforming OpenAI's leading models at a fraction of the cost.

This disruptive force has toppled ChatGPT from its app store throne and positioned DeepSeek as the new champion of open-source AI, raising critical questions about the future of the global AI race.

The AI world is abuzz with the arrival of DeepSeek's r1, a language model that claims to rival the performance of industry giants like OpenAI and Anthropic, but at a fraction of the cost.

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While OpenAI's o1 model reportedly cost tens of billions of dollars to train, DeepSeek's r1 achieved comparable performance with a mere $6 million investment.

This staggering difference in development costs has ignited a debate about AI development's future and current models' economic viability.

My view:

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